Government of Meghalaya

Budget Speech

1996 – 97

By

Dr. R. C. Laloo

Finance Minister, Meghalaya

27th March, 1996

Mr. Speaker
Sir,

It is my honour
and privilege to present before this august House the budget estimates for
1996-97.

NATIONAL ECONOMY :- There has been a remarkable
revival of the Indian economy in a short period of four years. The crisis
of 1991 has been entirely overcome. The process of economic restructuring
and reforms has succeeded in moving the economy to a higher growth path
characterised by expansion of productive employment, a reduction of poverty,
recovery in industrial output and foodgrains production, a substantial
breakthrough in exports and a marked fall in rate of inflation. Over
all economic growth accelerated to attain a high growth of 6.3% and
projected to record a similar growth of 6.2% in 1995-96 surpassing the
average growth of first 4 years of the 8th Plan at 5.7% which is a little
higher than the 8th Plan target of 5.6%. Dr. Manmohan Singh, Union Finance
Minister was right in stating that the post-crisis achievement of India is
"remarkable" by international standards and the growth momentum
appears to be sustainable.

2. The domestic
savings rate has reached a high of 24.4% of the GDP, the growth of real wages
has averaged at 5.1% per annum. The incidence of poverty had declined to 19% of
the population and employment growth is estimated to have averaged at 6.3
Million jobs per year over 1992-93 to 1994-95 against the annual rate of 4.8
Million jobs in the1980's Industrial growth has further increased from
8.6% in 1994-95 to 12% in the April-September period of the current year and
likely to be at this level in 1995-96. Capital goods sector accelerated at
25% in 1994, power generation at 8.5% and manufacturing at 9%. Food grains
output attained a record level of 191 Million MT in 1994 and may be
190 Million MT in 1995-96 which reflects the effectiveness of the system of
various incentives given to the farmers. The food security system has been
stabilized further with the public food stocks at the level of 24.6 Million MT
at the beginning of 1996 as against 14.7 Million MT about 4 years ago.

The overall
performance of the infrastructure sector was satisfactory with output of Coal,
Steel and crude oil production registering growth at 6%, 9.3% and 10%
respectively. Liberalisation of external trade and the new export strategy have
yielded good results. In 1995-96, the export boom continued with 24% growth in
the first 9 months following a 18.4% growth in 1994-95. In tandem with
industrial recover, imports grew at a higher rate of 29.2% in
April-December 1995 as against 22.9% in 1994-95 resulting in
widening of Trade deficit. However, there has been a significant increase
in Foreign Direct investment in 1995-96 over 1994-95 level of US $ 1.31
Billion. Though partly offset by favourable changes in the external currency
rates, foreign debt continues to be very high though as a percentage of GDP
it has declined from 41% in 1990-91 to 33% in 1994-95 and therefore calls for
prudent management

A major
achievement has been the decline in the rate of inflation which is ruling at
4-5% in January-February, 1996 due to overall growth in output and reduction
in expansion of money supply in the economy. Nevertheless, continuing rise in
the prices of essential goods of mass consumption such as food grains, edible
oil are matters of concern which underscore the need for a broad based public
distribution system.

While
presenting the Union Budget for 1996-97, the Union Finance Minister stated that
the national objective is to accelerate growth with increased economic stability
and to achieve this, the major tasks before the Nation are to complete reforms
in areas of taxation, trade and industrial policies, financial sector so as to
raise the efficiency and competitiveness of the economy, to raise public
saving's to contain inflation on priority basis, to correct the slippage
in fiscal deficit, to remove constraints on further expansion of
agricultural and industrial output, to strengthen the anti-poverty programmes,
to modernise the delivery systems of social services and to provide adequate and
reliable levels of economic infrastructure services at reasonable cost.

STATE ECONOMY :- The year 1994-95 was a difficult year
for the state economy. The flood in Garo Hills District and uneven
distribution of rainfall caused decline in agricultural output. Food grains
production remained at a low level of 1.43 lakh MT against the target of
2.03 lakh metric tons and rice output at 1.11 lakh MT, as against 1.18
lakhs MT in 1993-94. The production of potato, major cash crop, also
suffered and stagnated at 1.21. lakh metric tons. However, area and production
of cotton and horticultural crops in 1994-95 show a better trend as the area and
production of Pineapple and Citrus fruits have increased. Since the economy is
predominantly agricultural, contributing about 32% to SDP intensification of
agricultural development schemes is needed to raise the output and farm incomes
which will be a major objective of the Annual Plan 1996-97.

In the field of
industries, there has been some progress particularly in the small scale sector
in terms of increase in number of units from 1231 in 1988-89 to 2294
in 1994-95, investment in plant and machinery from Rs. 608.66 lakh to Rs.1513.80
lakhs and employment from 7458 to 13483 persons in 1994-95. There has been a
significant increase in the output of coal, limestone and sillimanite in the
last two years.

The Provisional
Net State Domestic Product at constant prices was estimated at Rs. 345.66 crores
in the year 1993-94 where as the Quick Estimates for 1994-95 was Rs. 360.48
crores which indicate a growth of 4.29% over the year as against 14.23% of
the previous year. The Net SDP at current prices for the year 1994-95 is
estimated at Rs. 1205.68 crores as against Rs. 1054.10 crores in 1993-94
registering a growth of 14.38 compared to 8.91% in the preceding year.

The Per Capita
Income at Constant Prices (1980-81) was Rs. 1810 in 1993-94 where as in
1994-95, it was Rs.1835 (QE) showing a rise only 1.38% compared to 11.04% of the
preceding year. The Per Capita Income at current prices works out at Rs. 6136
(QE) in 1994-95 as against Rs.5519 in 1993-94 registering a growth of 11.18% as
against 5.83% registering a growth of 11.18% as against 5.83% of the year
earlier.

Unemployment
problem had been causing great concern to the State Government. According to the
Live Registers of the Employment Exchanges of the State, the number of
applicants seeking employment as on 31st December, 1993,1994 and 1995 were
27604, 27282 and 27584 respectively. As per available statistics on educated
unemployed, the number of Engineering Graduates recorded a gradual decrease from
106 in 1994 to 92 in 1995.

The total number
of job seekers attaining Matriculation standard and Pre-University/higher
Secondary rose from 11,529 to 13054 in 1995.

A continuing
feature of the State economy is the high cost of machinery, raw materials and
services which means higher investment requirement for every development
activity. Hence the imperative need of achieving efficiency in resource use. The
Consumer Price Index of Shillong centre in June 1995 recorded a very high index
of 262 compared to the other selected centres of the country. Prices continued
to show an upward trend during the year 1995 with the increase of both
wholesale and retail prices of essential commodities. As the supplies of
essential commodities in the State are mostly from outside, an increasing trend
of prices is evident which may continue in 1996-97.

PLANNING :- Eighth Plan outlay of Meghalaya (1992-97)
is Rs. 1029 crores. In the third year of the Plan (1994-95) the original outlay
was fixed at Rs. 281.00 crores which was subsequently revised to Rs. 210.00
crores. Actual utilisation during 94-95 was Rs. 181.60 crores. The
State could not avail of large components of loans and External Aided funds
provided in the Plan. The approved outlay of Meghalaya Annual Plan for 95-96 has
been fixed at Rs. 306.52 crores. The Annual Plan 95-96 is oriented towards
strengthening of rural economy by giving high priority on agriculture and
other rural development programmes. In Roads and Bridges sector adequate
attention is given on the on going construction of important works like
Jowai-Amlarem-Dawki Road Dalu-Baghmara road etc.

In view of the
forthcoming general elections to the Parliament (as also the Assembly elections
in some states/Union Territory), the Planning Commission has decided to
postpone the Plan discussion for 1996-97. The state government was,
therefore, advised to proceed with the preparation of Plan Budget for the year
1996-97 on the basis of Central assistance as fixed for the Annual Plan (95-96).
Accordingly, the plan size for 96-97 has fixed at Rs. 306.52 crores. The
State government is also submitting the proposal of Rs. 71.72 crores for
Centrally Sponsored Scheme for the year 1996-97. This is only the Central share
which falls outside the agreed State Plan. In addition to the state Plan outlay
for 95-96, a tentative amount of Rs. 1062.00 lakhs has been allotted to
the state out of the fund under the North Eastern Council Plan as against
the revised outlay of Rs. 962.41 crores during 94-95.

PROGRAMME IMPLEMENTATION :- The role of the department
is to monitor, and review the implementation of Plan schemes and projects of
various departments including 20- point Programme. Public Enterprise Cell under
this department has been performing as a nodal agency for all State Public
Enterprises to bring about uniformity in their appointment policy, timely
preparation of accounts, and streamlining of this functions.

AGRICULTURE :- The economy of Meghalaya is basically
rural and agrarian. However, The progress of agriculture continues to be slow
due to the practice of shifting cultivation, and low level of adoption of
improved technology. The proposed annual plan outlay is 1171.00 lakhs during
1996-97.

The priority
sector in Agriculture are Food grains and horticulture. The Food grains
production in 1993-94 was 1,49,334 tonnes, lower than the target, due to flash
flood, lack of use of modern inputs and significant transfer of ownership of
land into the hands on non-agriculturists. The target for food production
for 1996-97 is proposed at 2.16 lakh tonnes against the target of 2.07 lakhs
tonnes during 95-96. To achieve this, the main strategies will be to
provide irrigation facilities for expanding the area under multiple cropping,
increased use of fertiliser in existing fields, high yielding varieties and
plant protection measure. The target of potato production proposed is 1.76 lakh
tonnes. Under Horticulture, various measures including popularisation of
'Poly' houses to promote growth of vegetables and flowers are expected to boost
the production to 2.63 lakhs tonnes by the end of 1995-96 from the level of 2.08
lakhs tonnes in 93-94. A target of total horticultural crops production of 3.29
lakh tonne is fixed during 1996-97. Recognising the imperative and need to set
up appropriate institutional arrangements for developing the vast potential of
horticultural and commercial crops, the Government have decided to set up a
Commercial Crops Development Board and a separate Directorate of Horticulture
for which provision have been made in the agricultural provision have been made
in the agricultural sector Plan of 96-97. Construction of buildings for
establishments of two more District Research Stations and Laboratories, one at
Nongstoin and other at Williamnagar has been completed and will start
functioning soon. The National Watershed Development Projects for rainfed Areas
(NWDPRA) is being implemented in 8(eight) Micro-Water-sheds under a Central
Sector Scheme with an area coverage of 4000 hectares. Establishment of an
"AGMARK" laboratory is going to be completed this year.

ANIMAL HUSBANDRY AND VETERINARY :- Animal Husbandry is
one of the important sub-sectors of agricultural economy and plays a significant
role in the rural economy in providing gainful employment particularly to
the small/marginal farmers, women and agricultural landless labourers.
Incentives in the form of subsidy and technical advice are provided to the
people to take up poultry, piggery and dairying. During1995-96, the scheme for
providing subsidy under Poultry, Piggery and Dairying schemes to the rural
people and educated unemployed youths was continued. A total number of 278
beneficiaries and 208 educated unemployed youths is covered under this scheme.
The Plan outlay for 1996-97 is the same as 1995-96. The thrust areas are
upgradation of Veterinary health cover, strengthening of existing Cattle,
Poultry and Pig Breeding farms and Feed Mills.

FISHERIES :- Inland Fisheries are mostly practiced in
this state and the main thrust is given to production of fish and fish seed both
in Department pond and in private sector. During 1994-95, 4074 MT of fish was
produced against a target of 4050 MT and a target of 4350 MT has
been fixed during 1995-96. With a view to augment fish production in
private sector, incentives are being provided to private pisciculturist to
develop pond culture under individual and co-operative sector. The
Kyrdem Kulai and Nongmahir reservoirs have been taken over by the department for
fish culture to increase the production. Besides the existing scheme, new
schemes like Fish-Cum-Piggery-Cum -Duckery and Poultry farming, construction of
Mini Barrage have been taken up. Under the Mini Barrage Scheme 79 Fishery
Projects have been taken up during 1994-95 in the State. 210 fish farmers
will be imparted training in modern techniques of fish culture during 1995-96.
The fish farmers Development Agency set up during 1994-95 have implemented
a number of schemes. In 1994-95, 74 hectares of water area have been covered
under this scheme. The target of covered areas has been fixed at 94 hectares
during 95-96.

An amount of Rs.
135.00 lakhs is the annual plan outlay proposed during 1996-97 for the
development of fisheries in the state.

CO-OPERATION :- The Co-operative movement is a
people's movement and its success depends on conscious participation of the
people in it. The role of the co-operation Department is therefore that of
a catalyst. A total number of 32 new cooperatives was registered in the last
year. A Memorandum of Understanding was reached between Meghalaya Co-operative
Apex Bank, NABARD and the State Government last year for
implementation of an action plan which will bring about desired
improvement in the functioning of primary credit structure and increased credit
flow to farmers. Garo Hills Cooperative Cotton Ginning and oil Mills Ltd.
already procured about 4000 qtls of cotton in collaboration with Cotton
Corporation of India. Consumer Co-operatives continues to maintain the growth
rate. Co-operatives in other activities like handloom weaving Transport, Piggery,
Dairy etc have made considerable progress.

FOREST AND ENVIRONMENT :- The Scenario of Environment
and Forests continues to cause concern. Destruction and degration of
forests are taking a heavy toll of our soil and water resources. In recent years
massive campaigns have been launched for conservation and protection of
forests and natural resources through Doordarshan, AIR and local press.
The public participation and involvement of NGOs in prevention and control of
pollution and environmental degradation will be facilitated by providing
necessary technical help.

The action Plan
for the Department include provision of an Intensive Tree cover for protecting,
regenerating and restoring the degraded land through the social forestry wing.
An area of 4000 hectares is likely to come under this activity during 96-97.
Development of Infrastructure for the protection of forests from biotic
interference to preserve and protect natural forest wealth will be taken up.

Besides these
activities schemes on parallel speeding up of coordinated Air and Water
pollution control, Eco-Development in Forest areas, Improvement of existing
National Parks Sanctuaries are on the anvil.

SOIL CONSERVATION :- The primary task of the
department is to protect all natural ecosystem by a comprehensive strategy of
protection appropriate for different ecological and Geographical regions, of
soil, water and vegetation. To achieve this daunting task, the Department
has put maximum stress on Afforestation, Prevention of Soil Erosion, Water
Conservation and distribution works, cash crop Development and Control of Jhum
cultivation. The Jhum control scheme is based on alternative and viable
technology for the farmers to switch over to settle forms of cultivation for
which Rs. 179.50 lakhs is proposed in 96-97 as against current year's allocation
of Rs. 173.15 lakhs. Out of the total 8th Plan out lay of Rs. 2440,
a provision of Rs. 720.00 lakhs has been earmarked for the year 1996-97 under
soil conservation.

COMMUNITY AND RURAL DEVELOPMENT :- Alleviation of
rural poverty has been one of the primary objectives of planned development in a
state and country as a whole. Ever since the inception of planning, the
policies and programmes have been designed and redesigned with this aim. The
problem of rural poverty was brought into a sharper focus during the last
plan period. The strategy adopted by the department to achieve the above goals
is through the state sector, Centrally sponsored and Central Sector Schemes. An
outlay of Rs. 500.00 lakhs has been approved as annual plan outlay for 95-96 and
Rs. 900.00 lakhs for 96-97. Apart from the state Sector Schemes, the department
is implementing IRDP, JRY, EAS and MP Local Areas Development Schemes.

IRDP is
implemented through the DRDA having an annual outlay of Rs. 300.00
lakhs during 1995-96 while the Jawahar Rozgar Yojana (JRY) is having a
provision of Rs. 200.00 lakhs during 1996-97. Under this programme, 30
percent of the employment benefits is reserved for women. Employment Assurance
Scheme (EAS) is taken up in the state with a primary objective of providing
additional gainful employment to the rural poor irrespective of men and women
during the lean agricultural seasons for which Rs. 200.00 lakhs have been
proposed during 1996-97.

Among other
programmes, special scheme for assistance to Small Farmers, Marginal Farmers,
Special Rural Works Programme, construction of Rural Roads Programme may be
specially mentioned. The National Social Assistance Programme (Old age
pension scheme) is the new scheme to be implemented by the department with
effect from 1996-97.

INDUSTRIES :- Despite vast potential for
Industrial Development due to enormous mineral, forest and agricultural
resources, Meghalaya continues to be lagging behind in industrial growth due to
a series of Complex constraints. It has been the endeavour of the Government
to remove some of these constraints which include inadequate infrastructure
and lack of entrepreneurial skills among the tribal population. The government
have set up a single window agency for speedy clearance of proposal for setting
up of industrial unit.

Meghalaya
Industrial Development Corporation has invested so far in Equity and
Preference Shares in 19 Companies with a total amount of Rs. 663.10 lakhs. The
Corporation is also implementing Man Power Training Scheme, entrepreneurial
Development Programme and Growth Centre Scheme.

The first phase of
the re-activation of Mawmluh-Cherra-Cement Limited has been completed and
production stepped upto 680 MT per day. The second phase is underway. The
state has been exporting coal and limestone under Export Programme
and the MMDC is acting as Nodal Agency to boost up such exports.

In the Small Scale
Sector, the District Industries Centres are playing an important role
through Package Scheme of Incentives, Industrial exhibitions and Grants-in-Aid
to Technically skilled Entrepreneurs. Meghalaya Khadi and Village Industries
Board and Meghalaya Handloom and Handicraft development Corporation Ltd. are
functioning under the administrative control of the Department. The Prime
Minister's Rozgar Yojana is being implemented with the object of creating
employment opportunities for the unemployed youths and develop entrepreneurship
with financial support from the Banks. In 95-96, 550 youths are to be covered
under this special scheme.

POWER DEPARTMENT :- The strategy for energy
development forms an integrate part of any development strategy. Its efficient
use and long term sustainability are the two important objectives of economic
planning. During 1996-97 it is proposed to take up (i) Renovation and
Modernisation of existing hydro power stations (ii) Implementation of ongoing
generating schemes (iii) Survey and Investigation (iv) Transmission and
Distribution and Rural Electrification works.

Under renovation
and Modernisation programme, M.S.E.B. invited a technical Team from the
Japan Consulting Institute with a view to get the machines thoroughly
checked as well as to facilitate assistance from OECF, Japan. The
estimated cost of renovation of stage I & II Power Stations are Rs.
94.76 crores and Rs. 94.40 crores respectively.

Umiam-Umtru Stage
IV HEP with Upper Khri diversion is the only ongoing 8th Plan Generation Scheme.
The stage IV portion of the Scheme was completed in August, 1992 at an estimated
cost of Rs. 132 crores. The works on Upper Khri portion could not be taken
up during 1995-96 due to non-settlement of land problem. However Rs. 50.00
lakhs is proposed for Upper Khri Component. An amount of Rs. 50 lakhs has been
proposed during 1996-97 for implementation of Leishka HEP. Other new schemes
could not be taken up due to financial constraints.

An approved annual
outlay for Transmission and Distribution works has been proposed for Rs. 1805
lakhs. The scheme includes modification, augmentation of 132 KV Grid
Sub-station at Mawlai and Khliehriat. Augmentation of Power station switch yards
at Umiam stage-I and stage -III and Umtru Power station has been taken up.
An amount of Rs. 50 lakhs has been proposed during 1996-97 against this scheme
to complete the left out work of Umtru-Power station. The construction of 132 KV
Sub-station at NEHU will be commissioned by March, 1996. There are other new
transmission schemes like construction of 132 KV sub-station at Nongstoin
also. Under Distribution works, Improvement of electric Power Supply at Shillong
has already been taken up. It is anticipated that an amount of Rs. 206.15 lakhs
would be spent during the year. A Master Plan has been drawn up for Meghalaya as
a whole for strengthening and improvement of sub-transmission and distribution
net work and an amount of Rs. 742 lakhs has been proposed for the purpose.

The approved outlay for the year 1994-95 and 1995-96 against the Rural
Electrification were Rs. 650 lakhs and Rs. 974 lakhs respectively; Rs. 524 lakhs
is for electrification of 60 villages and Rs. 450 lakhs for system Improvement
scheme but due to resource constraint, the scheme could not be
implemented. A target for annual plan for 1996-97 is Rs. 1485 lakhs for
village electrification and system improvement.

MINING AND GEOLOGY :- Meghalaya being a store house of
economic minerals, the Department has taken up a programme to explore such
minerals and is currently engaged in exploration of ground water resources and
Geo-technical studies. During 1995-96, 9(nine) numbers of exploration programme
of minerals, ground water, Geo-technical studies have been launched. An
investigation programme on Granite around Nongpoh under N.E.C. will be completed
by March,96.

Besides
exploration, the department is also responsible for general administration of
mines and collection of revenue in the form of royalty and cess. In the current
year upto December,'95 an amount of Rs. 10.12 crores of revenue has been
collected and it is expected that the total revenue will be around Rs. 29.00
crores

Construction of a
Coal Depot Project at Jorabat under the Meghalaya Mineral Development
Corporation (MMDC) is in progress. During 1996-97, an amount of Rs. 174.00
lakhs under State Plan budget has been proposed. To augment the collection of
revenue targeted at Rs. 39.20 crores, during 1996-97, the department will
upgrade the existing infrastructure, and will take up investigation scheme on
exploration of "High Grade Lime stone of Nongkhlieh Ridge" in
Jaintia Hills under N.E.C.

EDUCATION :- Education will continue to receive
highest priority of the Government. During 1995-96, 1621 Primary teachers were
appointed under the operation Blackboard Scheme and nutritional support was
given which benefited 2.50 lakh School children. Text Books and furniture were
provided to the Primary Schools. 17 Secondary Schools were upgraded by opening
of second stream of Arts/Science where Higher Secondary classes were
started. While the improvement of Education facilities and quality of Education
will continue, special emphasis will also be given on retention of
children in schools to reduce the number of dropouts and in the areas of
Vocational Education. The programme of Adult Literacy launched under the Total
Literacy campaign which was initiated under the National Literacy Mission
will be continued. In the Elementary Education, the approach will be on
consolidation and completion of the existing programmes such as
operationalisation of the Meghalaya taking over of DCLP
Schools Act 1993, imparting of training to the teachers and improvement in the
facilities of Pre-Primary and Secondary Levels of Education. Special
emphasis has been given on vocational and science education.

SPORTS AND YOUTH AFFAIRS :- The highest
Priority of the department is to develop Sports infrastructure and
facilities right at village, Block and State levels in a phased manner. Out of
32 projects undertaken for development of sports through out the State, 16 are
expected to be completed during 1995-96. So far the Department has rendered
financial assistance to 70 Sports Associations/Clubs/Organisations for carrying
out sports activities in various disciplines. The Departments organises
tournaments such as National Sports Talent Tests, Preliminary football
matches for Subroto Cup, Inter-School Sports and so on. The
Sports Authority of India has also set up a special Project Development
areas centre at the J.N. Sports Complex at Polo ground, Shillong. During
1995 the state has also witnessed various National and Regional Competitions
such as Junior National Football Championship, First Junior National Karate
Championship etc. Meghalaya boys and girls represented the country in
Asian Karate Meet held at Manila. A gold medal in Marathon Meet held at Sikkim
was secured by a girl from Meghalaya.

SOCIAL WELFARE :- Although development brings economic
gains to society in general, specific measures are necessary to ensure that the
disadvantaged and the weaker sections of the disadvantaged and the weaker
sections of the population such as women, children, the disabled, the
elderly and the destitutes also receive some benefits. Various schemes
have been envisaged by the department with the help of the voluntary
organisastions. Prosthetic aids to 64 persons have been provided Vocational
training to 72 individuals, scholarships to 406 physically handicapped are
being extended during 1995-96. there are 30 ICDS projects which are
implemented through 1827 Anganwadi Centres. The project also covers non-formal
education and nutrition. 835 needy children are provided with
food, clothing and shelter through 24 voluntary organisations. Three Training
centres for self employment of women at Shillong, Tura and Jowai are imparting
training to 105 women in various trades. Under Supplementary Nutrition
Programmes, 1,15,291 beneficiaries have been covered. The Annual Plan
Outlay proposed for 96-97 is Rs. 95.00 lakhs under Social Welfare and Rs. 238.00
lakhs under Nutrition Programme.

HEALTH AND FAMILY WELFARE :- Health of the people is
not only a desirable goal but is also an essential for proper development of
human resources. Even as the country approaches the 21st Century, in vast
expenses of rural areas, attaining the goal of "Health for All" still
remains a stupendous task and our Health department is trying to achieve
the goal. Progress was made in building of rural health infrastructure by
completion of on going schemes with 12 C.J.Cs completed as on 1.4.95 and 2
more C.H.Cs are expected to be completed by 1.4.96. Primary Health
Centres will have another addition of 7 centres and 12 numbers in
case of Sub Centres. Construction of O.P.D. Complex at Shillong civil
Hospital is progressing well.

The District
Project on National Cancer Control Programme, a newly funded scheme by the
government of India will be implemented during 96-97 at the Civil
Hospital, Shillong with 10 beds for Cancer patients. Drug abuse has become
serious problem to our state. In order to combat this menance, Health Department
have already initiated programmes. The project will be implemented at the
Civil Hospital Shillong. M.C.H and Family Welfare Programme in
Meghalaya is implemented for improving the health of mother and children and for
improving the quality of life. A massive immunisastion programme has
been taken up to combat against Diptheria, Tetanus, Tuberculosis etc. Village
Health Guide Scheme is being implemented in the state as a 100%
Centrally sponsored Scheme. At present 1210 Health Guides are continuing at
different Primary Health Centres in Meghalaya.

PUBLIC WORKS DEPARTMENT :- Transport Sector bears a
close and dynamic relationship with all other sectors of the economy as roads
provide the basic infrastructure for transportation of goods and passengers.
Road Transport is the only means of surface communication system particularly in
hill state like Meghalaya. Accessibility of villages by all weather roads
improved significantly during past few years.

Total road density
has increased from 12.35 Km/100 Sq.M to 28.50 KM/ 100 Sq. M at the end of three
years of 8th Plan period. The department has attained a total length of 6437.094
Km upto the end of 1995-96. The proposed outlay in 96-97 is Rs. 6900.00
lakh with the physical target of 130 Km under formation and 100 Km under
Metalling and Black topping, 55 Km of improvement works and
construction/reconstruction of 550 Running Meters of running bridges. By the end
of 8th Five Year Plan the road density will reach 30.39 Km/100 Sq.M.
though it is still far below the National average. Out of 4902 villages,
2446 villages have already been connected by roads and construction of rural
roads will continue.

Substantial
expenditure has been incurred on the construction of roads under certain other
heads of development like NEC Schemes, Border Areas Development Schemes and
National Highways.

Building Wing of
the department is implementing and executing the building projects of different
departments of the Government including Meghalaya Houses in New Delhi and
Calcutta.

PUBLIC HEALTH ENGINEERING :- Since
Provision of Potable Safe drinking water and basic sanitation are vital
human needs for health and efficiency, Rural Waster Supply and Rural
Sanitation schemes are important components of rural development. Rural
Water Supply Scheme are funded under Minimum Needs Programme, Accelerated
Rural Water Supply Programme and Technology Mission. Sanitation Programme is
funded under Centrally Sponsored Rural Sanitation Programme.

Till 31.03.95,
Rural Water supply scheme has covered a population of 11.40 lakh
including 5088 out of 5522 main habitations and 1405 out of 2433 other
habitation. During the current year, the available fund is Rs. 10 Crores under
MNP and Rs. 3.24 crores under ARWSP for implementation of the programme.

Under Central
Sector Scheme, on sharing basis in the ratio of 75:25, so far works on 6
Iron Removal Plans (IRP) in West Garo Hills have been taken up and 17 in
West Garo Hills are proposed to be taken up during 1996-97 as a part of the
effort to improve the quality of water.

All the seven
towns in the state have been provided with drinking waster facilities. Greater
Shillong Water Supply Scheme has been partially completed. At present, 40 lacs
gallons of water is being supplied in Shillong town daily. Works on remaining
components of the schemes are in progress. Beside this augmentation
of Tura and Jowai Water Supply schemes have also been taken up. It is proposed
to upgrade Simsanggiri Water supply scheme in 96-97.

The Rural
Sanitation Programme is being implemented under Central and State Sectors. Till
March, 95, 11447 Units of Low Cost Sanitary latrines have been
constructed. The targets for 1995-96 and 96-97 are 3000 such units.

TRANSPORT :- The Transport Department is basically a
regulatory Department. Its main functions are registration of vehicles, issue
of driving licences, permits for buses, trucks etc and to enforce the M.V.
Act. In addition, the department provides financial assistance to unemployed
youths belonging to scheduled Tribes/Castes for purchase of buses, three
wheelers etc. for which there is a provision of Rs. 2.00 lakhs during 1995-96. A
small provision is also kept for financial assistance to voluntary
Organisation for running school bus service. To expand Air travel facilities the
National Airport Authority has prepared a project for construction of an
Airport at Baljek Valley in West Garo Hills for which Rs. 7.00
crores was allotted by the Planning Commission in1994-95. National Airport
Authority of India has already been given Rs. 1.50 crores. The department has
also taken up survey for Ropeways in the State and M/s RITES,
Government of India undertaking has completed feasibility study in this respect.
For this, Budget provision of Rs. 15.00 lakhs has been made during 1995-96. A
computerised Railway Reservation facility is expected to be
introduced shortly in Shillong, which will greatly help the Traveling Public for
which the State Government has provided required funds in the current
year.

Meghalaya
Transport Corporation under the administrative control of the department is
playing a pivotal role in linking rural hinterlands. The corporation has
provided service links to 643 villages in the state, Revenue earning of
the Corporation has increased from Rs. 44.88 lakhs in 1976-77 to Rs.
380.00 lakhs in 1994-95. The Corporation is planning to acquire new buses for
which Rs. 150.00 lakhs has been earmarked during 1996-97.

TOURISM :- Tourism in Meghalaya has rich potential and
the capability to generate large scale employment directly and indirectly. The
Department of Tourism has taken up schemes to develop tourist spots and
facilities to cater the needs of the tourists. Improvement and
upgradation work of Orchid Hotel and Pinewood Hotel at Shillong and Orchid Lodge
at Tura are in progress. Other schemes such as the development of
Marngar Monolith area, construction of view points at various scenic
spots have already been taken up. Special programme for completion of Yatriniwas
at Shillong and Tura, Tourist Bungalow at Balpakram and Baghmara and
setting up of an amusement Park at Shillong have been provided in 1996-97
budget.

FOOD AND CIVIL SUPPLIES :- Revamped Public
distribution System envisages distribution of food grains like
Rice and Wheat at prices lowered by Rs. 50/- per quintal. Other commodities like
levy, Sugar, S.K. Oil and Iodised salt are also distributed through the
net work of 603 Fair Price Shop in Urban Areas and 3134 Fair Price
Shop in rural areas under the scheme. Allocations from Government of India
are being received regularly.

A State Consumer
Protection Council has been set up for ensuring the protection and promotion of
the rights of the consumer. Redressal Agencies both at state and District level
are looking into the complaints of the consumers. The cases registered in these
forums shows an encouraging development of consumers consciousness.

Various measures
to streamline and improve the functioning of R.P.D.S. in the state have been
taken up. Most important among these measures are (i) 12 (twelve) vans have been
purchased by the department during last few years for distribution
of essential commodities in rural areas (ii) Creation of additional
storage capacity to ensure regular availability of P.D.S. commodities, and
construction of a Godown with 500 MT at Pynursla and a Godown with 2000 MT at
Khanapara within the Complex of State Ware Housing Corporation.

REVENUE :- As Land in Meghalaya has not
cadastrally been surveyed, the Government is contemplating to get all lands
cadastrally surveyed and land records prepared to avoid litigations which will
enable the people in getting financial benefits from Banks and other
financial institutions.

In regard to Inter
state Boundary problems, consultations with Government of Assam is going on at
different levels. It may be mentioned that an Advisory Committee has been
constituted recently to study and examine the basis of demarcation of
Inter-state Boundary between Meghalaya - Assam (Garo Hills Sector)

BORDER AREAS DEVELOPMENT :- With the partition of the
Country, the traditional trade links of the people living in border areas
and adjoining areas which form part of Bangladesh were dislocated and their
economy adversely affected. With a view to ameliorate the economic conditions of
these people, various schemes through different departments have been
taken up. Under Agriculture Sector Loan-cum Subsidy, purchasing of tractors,
power tillers, Drip Irrigation project have been envisaged. Under Education
Scheme, it is proposed to cover up 20.000 students with an amount of Rs. 26.00
lakhs. Soil Conservation Department is also taking up Border areas programme for
introduction of Rubber, Cashewnut and conservation of soil and water. The Scheme
of Agro-custom Housing Centres has been implemented by MECOFED in 12
border areas with an aim to improve level of agriculture. An amount of Rs. 45.72
lakhs has been spent under road improvement schemes.

GENERAL ADMINISTRATION :- Recognising the shortage of
office and residential accommodation in the state, schemes for construction of
multi stories building in Secretariat Hill Complex, development of an integrated
office and residential Complex for the two new districts at Nongpoh and Baghmara
have been taken up. The Government has acquired a building at Guwahati for
use as State Guest House which is to start functioning soon. construction of
residential accommodation for the staff under various categories has also been
taken up.

HOME (POLICE) :- The law and order situation through
out the State was normal during the year 1995. Keeping in view the
complicated nature of crimes, efforts are on to modernise the Police Force and
to provide them the necessary equipments specially to deal with extremist
organisations. Meghalaya has the problem of infiltration of foreigners
from Bangladesh and Nepal. To prevent such surreptitious influx there are
88 BSF BPOs. In addition, a number of watch Posts, check gates, Patrol
posts, Bordering Police Stations have been set up. There is a proposal for
creation of 10 additional check posts, Mobile Task Force under Prevention
of Infiltration of Foreigners Schemes. Detection of foreign
nationals by Anti- Infiltration Personnel during the year 1995 is 3076. Approval
of the Government of India for setting up the 3rd Meghalaya Police Battalion on
the lines of India Reserve Battalion was obtained recently.

HOME CIVIL DEFENCE :- An an auxiliary force, the Home
Guards and Civil Defence Organisation are assisting the Police in law and
order duties. They are deployed at vital installations, important buildings and
store yards. During 1995, 163 urban Home Guard volunteers were trained and a
batch of Instructors were sent to the National Civil Defence College
Nagpur for reconnaissance and Reporting.

POLITICAL DEPARTMENT :- The State Capital has remained
by and large peaceful during 1995. Though there has been no large-scale
riots, there were some incidents of assaults during the month of January and
February 1995 on the issue of Photo Identity Cards Scheme. The F.K.J.G.P.
activists made major issue of the selling of liquor in Meghalaya and a public
rally was also held to highlight the issue. At that rally familiar issues of
Trading License, Influx of Foreigners, Boundary issues etc were raised.

DISTRICT COUNCIL AFFAIRS :- This
department look into the affairs of the Autonomous District Councils of
the State of Meghalaya. The District councils depend largely on Government
grants for implementation of various schemes. An amount of Rs. 300.00 lakhs was
provided in the budget 1995-96 and an amount of Rs. 330 lakhs is
proposed in 96-97. Under the Plan, Schemes for construction of village roads,
small bridges, market places, play ground, ring well etc. are implemented
through the District Councils. Also under non-plan, a total amount of Rs. 50.00
lakhs was provided in 95-96 for rural communication.

URBAN AFFAIRS :- Urbanisation is a natural
consequence of economic and social changes in the development process. The
challenge of reorienting the urbanisation process lies in overcoming the
infrastructural deficiencies and taking the best advantage of economic momentum
inherent in urbanisation. Accordingly, the department have been
formulating various plans for Shillong, Jowai and Tura. One of the schemes
is to ease the traffic congestion by way of constructing parking lots at
different places in these towns. A major project of reconstruction of Tura
market at an estimated cost of Rs. 607.00 lakhs is also likely to be completed
soon. Moreover, with a view to relieve congestion in the capital city, the
department is undertaking a project for setting up of a Satellite Township for
which 101.79 hectares of land has already been acquired. The department have
undertaken a sustained effort towards construction of sanitary latrines
and converting all dry latrines in the Municipal area of Shillong and Tura as
steps to do away with the dehumanising practice of scavenging. It has been
implementing various urban poverty alleviation programmes including
improvement of slums such as Nehru Rozgar Yojana with the
involvement of Municipal Boards and Meghalaya urban Development Agency.

SERICULTURE AND WEAVING :- Sericulture and Weaving
falls within the Village and Small Industries sector which provide subsidiary
occupation to the rural people. The main thrust of development of this sub
sector has been to set up production and productivity. Under Sericulture, 85
block plantations have been organised including 15 during 1995-96
besides the improvement of existing plantations. Chowki rearing has been
organised for distribution of Chowki Worms to the farmers and other necessary
inputs.

In Weaving, the
departments is trying to maintain quality control. Training and
demonstration are oarganised through 36 Pilot Handloom Weaving Centres.
Modernisation of handloom in Cooperatives and outside is also being taken
up through the State Apex Society of weavers and the State's Handloom
Cooperation respectively.

ELECTION DEPARTMENT :- With a view to preventing
impersonation of electors, the Election Commission had issued an Order to
implement a Scheme for issue of photo identity cards to electors. This
important Scheme has been implemented and completed on the 31st of
December, 1995, as per extended time frame specified by the Election
commission. Out of the electorate of 10,86,374, the total number of voters
who have been photographed is 7,79,276. It appears that number of electors
failed to come forward for photography inspite of adequate notice.

STATE LOTTERY :- In order to generate the much needed
revenue, the Government has resumed the Lottery draws. The scheme envisages that
the Distributing Agent guarantees to pay a minimum return of Rs. 4.38
crores per annum as return to the Government. The first draw was held on 12.5.95
So far the state has earned a revenue of about Rs. 3.96 crores.

ART AND CULTURE :- There is a growing recognition
that promotion of Art and Culture is the core of all development
activities, providing a sense of direction and guidance of human life,
inculcation of proper values and attainment of excellence in every walk of life.
In respect of performing Arts, various cultural programmes have been organised
through out the State. Recently the Wangala Troupe represented the State in the
inauguration of S.A.F. Games at Madras. The department has taken
steps to set up District Libraries at Nongpoh and Baghmara. The State
Museum Building will be opened to public with new Galleries.

ACTUAL 1994-95 :- During 1994-95 receipts on all
accounts were Rs. 2989.33 crores while the expenditure were of the order of Rs.
2992.81 crores resulting in the deficit of Rs. 3.48 crores. together with the
negative cash balance of Rs. 75.90 crores, the year closed with a deficit
of Rs. 79.38 crores.

REVISED ESTIMATES 1995-96 :- The year 1995-96 opened
with a negative cash balance of Rs. 79.38 crores. the Revised Estimates for
1995-96 shows a total receipts of Rs. 3445.84 crores on all accounts and a
total expenditure of Rs. 3444.74 crores leaving a surplus of Rs. 1.10
crores and together with a negative opening balance of Rs. 79.38 crores,
the year is estimated to close with a negative balance of Rs. 78.27 crores.

BUDGET ESTIMATES 1996-97 :- I now come to the budget
estimates for 1996-97. The year 1996-97 is expected to open with a negative cash
balance of Rs. 78.27 crores. the revenue receipts are placed at Rs. 775.80
crores and the revenue expenditure is estimated at Rs. 650.20 crores, thus
leaving a surplus of Rs. 125.60 crores. outside the revenue account, the
receipts are estimated at Rs. 2780.80 crores and the expenditure is estimated at
Rs. 2877.55 crores resulting in a deficit of Rs. 96.75 crores and thus the
surplus of Rs. 125.68 crores on the revenue account will stand reduced to
Rs. 28.85 crores. However taking into account the negative opening cash balance
of Rs. 78.28 crores, the year will close with the estimated deficit of Rs.
49.43 crores. The broad details are indicated at Annexure - II

The
recommendations of the Tenth Finance Commission have been enforced from 1.4.95.
Though the additionality allowed by the Government of India following acceptance
of the Tenth Finance Commission has to some extent removed the aberration
created under the Ninth Finance Commission Award, it falls short of our
expectations. For example, while the tenth Finance Commission provided for
maintenance expenditure of the Plan scheme completed by 31st March 1995,
it has made no provision for meeting the cost of Pay Revision which is therefore
to be borne, entirely by the State Government from its own resource. The House
is aware that the Third Meghalaya Pay Commission has been set up and started its
work from April 1995. The report of the Commission is expected in 1996-97.

I earnestly
request the people to insist on cash memos whenever goods are purchased so
that the State does not lose revenue.

With these
words, Sir, I present the Budget Estimates for 1996-97 before this august House
for consideration and approval. However, to enable the Government to carry on
with its duties and defray expenditure from the first day of the financial year
1996-97, I propose that the house may grant a Vote-on-Account.

Jaind Hind/Khublei/Mitela.

ANNEXURE I

STATEMENT SHOWING THE SECTORAL ALLOCATION UNDER 'STATE
PLAN' FOR 1994-95 AND 1996-97

(Rs. in Lakhs)

Name of Sector

Outlay 1996-97

1

2

I. Agriculture and Allied Services -

1. Crop Husbandry

1182.00

2. Soil and Water Conservation

650.00

3. Animal Husbandry

600.00

4. Dairy Development

76.00

5. Fisheries

135.00

6. Forestry and Wildlife

800.00

7. Storage and Warehousing

30.00

8. Agricultural Research and Education

28.00

9. Agriculture Financial Institutions

1.00

10. Marketing and Quality Control

115.00

11. Co-operation :

275.00

TOTAL - I- Agriculture and Allied Services

3892.00

II Rural Development

1. Integrated Rural Development Programme (IRDP)

300.00

2. Integrated Rural Energy Programme (IREP)

100.00

3. Jawahar Rozgar Yojana

100.00

4. Land Reforms

100.00

5. Community Development

500.00

6. Employment Assurance Scheme (EAS)

115.00

7. Special Rural Work Programme

795.00

8. Research and Training in Rural Development.

15.00

TOTAL -II- Rural Development

2025.00

III. Special Area Programme

Border Area Development
Programme

328.00

Total - III - Border Area
Development

328.00

IV. Irrigation and Flood Control

1. Major & Medium Irrigation

300.00

2. Minor Irrigation

680.00

3. Command Area Development

70.00

4. Flood Control Projects

443.00

Total -IV -Irrigation and Flood Control

1493.00

V. Energy -

1. Power

3565.00

2. Non-Conventional sources of Energy (NRSE)

100.00

Total -V- Energy

3665.00

VI. Industry and Minerals :-

1. Village and Small Industries

165.00

2. Sericulture and Weaving

140.00

3. Industries (other than village and Small
Industries)

920.00

4. Mining

174.00

Total - VI- Industries and Minerals

1399.00

VII. Transport

1. Roads and Bridges

6980.00

2. Roads Transport

250.00

3. Other Transport Services

95.00

Total - VII-Transport

7325.00

VIII. Science, Technology and Environment

1. Scientific Research including Science and
Technology

70.00

2. Ecology and Environment

50.00

Total-VIII- Science, Technology and Environment

120.00

IX. General Economic Services

1. Secretariat Economic Services

115.00

2. Tourism

400.00

3. Survey and Statistics

30.00

4. Civil Supplies

40.00

5. Aids to District Councils

300.00

6. Weights and Measures

19.00

Total -IX- General Economic Services

904.00

X. SOCIAL SERVICES INCLUDING EDUCATION :-

1. General Education

2883.00

2. Technical Education

60.00

3. Sports and Youth Services

425.00

4. Art and Culture

165.00

SUB TOTAL-EDUCATION

3533.00

5. Medical and Public Health

1331.00

6. Water Supply and Sanitation

1925.00

7. Housing

340.00

8. Urban Development

665.00

9. Information and Publicity

90.00

10.Welfare of Schedule Castes Scheduled Tribes and Backward
Classes.

7.00

11. Labour & Labour Welfare

17.0

12. Training and Employment

110.00

13. Social Security and Welfare

95.00

14. Nutrition (M.N.P.)

238.00

TOTAL - X SOCIAL SERVICES

8351.00

XI General Services :-

1. Jails

100.00

2. Stationery and Printing

50.00

3. Public Works (G.A.D. Buildings)

650.00

4.Other Administrative Services

(i) Meghalaya Administrative Training
Institute

50.00

(ii) Fire Protection services

100.00

(iii) Police Housing

100.00

(iv) Judiciary Buildings

100.00

Total - XI - General Services

1150.00

GRAND TOTAL

30652.00

ANNEXURE -II

THE FINANCIAL POSITION FOR THE YEAR 1996-97 WITH
THOSE OF THE PREVIOUS YEARS.